Why Mark Minervini may look into INTRA-CELLULAR THERAPIES INC (NASDAQ:ITCI)

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if INTRA-CELLULAR THERAPIES INC (NASDAQ:ITCI) is suited for growth investing. Investors should of course do their own research, but we spotted INTRA-CELLULAR THERAPIES INC showing up in our Minervini growth screen, so it may be worth spending some more time on it.

Checking the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for ITCI:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

What matters for high growth investors.

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. ITCI was assigned a score of 5 for growth:

Explosive Earnings Growth

• The EPS of ITCI has exhibited growth from one quarter to another (Q2Q), with a 46.67% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• ITCI shows accelerating EPS growth: when comparing the current Q2Q growth of 46.67% to the previous quarter Q2Q growth of 0.0%, we see the growth rate improving.
• Over the past year, ITCI has demonstrated 50.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With impressive quarter-to-quarter (Q2Q) revenue growth of 50.81%, ITCI showcases its ability to generate increased sales and revenue. This growth indicates the company's strong customer demand and its effective business strategies.
• Accelerating Sales growth for ITCI: the current Q2Q growth of 50.81% exceeds the previous quarter Q2Q growth of 38.97%.
• ITCI has achieved significant 1-year revenue growth of 46.61%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• The average next Quarter EPS Estimate for ITCI has experienced a 42.86% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.

Financial Strength & Profitability

• With a favorable trend in its operating margin over the past year, ITCI demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• ITCI has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• A Debt/Equity ratio of 0.0 suggests that ITCI is managing its debt levels responsibly.

Institutional Confidence & Market Strength

• With institutional shareholders at 94.75%, ITCI demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• ITCI has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 98.37 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Why is ITCI a setup?

ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. ITCI currently holds a 5 as its setup rating, suggesting a particular level of consolidation in the stock.

ITCI has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

For an up to date full technical analysis you can check the technical report of ITCI

Concluding

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.